Human Capital: Human Resources Development

To continue to generate high added value, the Shin-Etsu Group is focused on developing “T-Shaped Human Resources”. This describes someone who is an expert in a certain task or field, but also has a wide range of work skills that allow them to excel in other fields. Based on this philosophy, we have made OJT (On the Job Training) the cornerstone of our human resources development. We place employees with a sense of respect for their aptitude and professional aspirations, and we support each employee to become a true expert in their assigned job.

We have established a training system that combines training and learning opportunities tailored to each stage of development to enhance expertise and practical skills. Through training for different staff grades, we aim to strengthen the management skills, leadership abilities, and problem-solving skills required at each level. Furthermore, given our business structure with a high proportion of overseas sales, we are also promoting the improvement of international communication skills necessary for smooth business operations.

Developing T-Shaped Human Resources

Our aim is to develop employees who, while grounded in high-level expertise, can also perform effectively in adjacent areas; in other words, “T-shaped human resources”. This means individuals who, in their respective roles such as manufacturing, R&D, sales, and management, not only deeply understand their responsibilities and deliver tangible results, but also acquire knowledge of related departments and surrounding fields, enabling them to work from a holistic perspective.

While our business has advantages in terms of quality, technology, and stable supply, the global market is changing rapidly, and the standards demanded by customers are rising year by year. In such an environment, we gain another source of competitive advantage when each individual can hone their own expertise while also proactively participating in inter-departmental collaboration and problem-solving.

Therefore, rather than implementing uniform job rotations, Shin-Etsu Chemical has established an environment that respects individuals' aptitudes and desired career paths, enabling them to continuously deepen their expertise in their assigned roles. In addition, through training for different staff grades, global communication training, AI training, and MI* education, we provide a foundation for expertise and support learning that broadens employees' perspectives, fostering growth that balances depth and breadth.

*MI:
Materials Informatics. This research field involves analyzing data such as material composition, structure, and process conditions using statistics and machine learning to optimize physical properties and performance, thereby making materials development more efficient.

OJT-Based Human Resources Development Cycle

To cultivate “T-shaped human resources”, Shin-Etsu Chemical emphasizes On-the-Job Training (OJT), which allows employees to enhance their skills through daily work. This is because we believe that facing real challenges and accumulating field experience will lead to the consolidation of expertise and the improvement of practical skills. We place employees with a sense of respect for their aptitude and professional aspirations, and we support each employee to become a true expert in their assigned job.

To make this OJT truly effective, Shin-Etsu Chemical doesn't assume that gaining experience is the end of the training process; rather, the process is a continuous cycle of setting goals and reflecting on them, thereby driving future growth.

Education/Training and Personal Development

To supplement OJT, the Shin-Etsu Group provides a variety of training programs tailored to different stages of growth to support employees' development. We provide learning opportunities tailored to various stages of growth and job responsibilities, including training for different staff grades, global communication training, a university auditing student system for employees, AI training, and MI education. Such training is positioned as an opportunity to organize insights and awareness of challenges gained on the ground and to systematically re-acquire knowledge and skills.

In this way, by combining the core OJT with evaluation, interviews, and training, Shin-Etsu Chemical continuously supports the growth of each individual employee and, as a result, enhances the overall capabilities of the organization.

Training for Different Staff Grades

We provide various level-specific training programs to learn management, leadership, communication, and problem-solving skills that are essential for improving performance and are required at each level of the organization.

  • General manager training (Advanced management training, S staff group/M staff group training)

  • Section manager training (Middle management training)

  • Junior manager training (Line management training/Staff management training)

  • Regular employees (Mid-career employees training, Women employee training, Junior leader training, Third-year training)

Global Communication Training

The Group’s business partners are spread around the world, with overseas sales now accounting for approximately 80% of consolidated sales. Competency in a foreign language is therefore an essential skill for smooth operations. Therefore, the company offers the following kinds of training:

  • English language training (meeting skills course and presentation skills course)

  • Cross-cultural communication training

  • Chinese conversation classes

AI Training

To discover and develop human resources capable of utilizing AI and to improve the overall level of AI in the Company, we offer the AI training listed below. A new generative AI literacy course (e-learning) has also been incorporated into the curriculum. In FY2025, 669 employees participated, and in the five years since FY2021, a total of 1663 employees have participated.

  • New employee training: e-learning for new and young employees

  • AI Training

    • 1)

      Basic training: Learning programming in Python

    • 2)

      PBL (Problem Based Learning): Problem-based learning for mid-career employees to solve practical problems (5 months)

  • DX management training: E-learning for general managers and section managers involved in projects

MI Education

We offer the training described below with the goals of developing personnel capable of utilizing machine learning for material exploration and shortening R&D time. In FY2025, 99 employees participated, and in the five years since FY2021, a total of 269 employees have participated.

  • MI practical training: Practical training mainly for researchers at research centers. Conducted based on our own proprietary materials. Three courses are available (beginner, intermediate, and advanced) depending on the student’s level of proficiency.

  • AI practical training: Practical training mainly for researchers at research centers. Conducted based on our own proprietary materials together with lectures from invited experts. Two application-specific courses (image analysis and time series analysis) were prepared.

University Auditing Student System for Employees

In 1962, Shin-Etsu Chemical established a system for sending employees to universities as auditing students with the goal of improving on-site capabilities at each workplace. Under the system, up to about ten operators each year are chosen from the Group’s plant manufacturing sites and sent to study at universities for one year. The program is similar to a study abroad program, except that the students stay in Japan. During the training period, students not only learn specialized knowledge by auditing university classes, but also network with people from other businesses, plants, and corporate divisions that they otherwise may not have much contact within their daily work, which is also important. In the 64 years since the system was introduced, a total of 562 employees have completed the program, and many of the graduates go on to play key roles in their workplaces.

Training System List

図:研修制度一覧。階層別研修、専門教育、AI・MI研修、環境・安全教育、品質管理教育、特別教育、一般教育。

*1Materials Informatics

*2Problem-based Learning

Toward Further Productivity Improvement

Tracking and Improving Employee Engagement/Inclusion

We believe that creating a workplace where each employee can confidently demonstrate their abilities and continue to take on challenges is the foundation for improving productivity. We therefore regularly conduct surveys of all employees as a way to continuously monitor the state of the organization, detect issues early, and drive improvements.

The survey results are not just compiled; we also conduct organizational analysis and factor analysis at the per-worksite and per-organization level, and examine conditions related to engagement and inclusion from multiple perspectives, including job satisfaction, organizational cohesion, relationships with supervisors and colleagues, and ease of working. The issues identified through this analysis are then translated into policies tailored to actual workplace conditions, leading to revisions of operations and systems.

Furthermore, improvements are not limited to company-led, one-way measures; we emphasize sharing an understanding of the challenges within each worksite and proceeding with initiatives from a perspective close to the front lines. Each workplace takes the lead in considering and implementing improvement measures, confirming their effectiveness, and driving continuous improvement through a bottom-up PDCA cycle. Going forward, we will continue to create an environment where employees can demonstrate their abilities through such mechanisms, leading to further improvements in productivity.

Revision of the Personnel Evaluation Systems

Shin-Etsu Chemical maintains a performance-based personnel evaluation system because we believe that increased employee motivation, stemming from taking on challenging goals and having those achievements and attitudes reflected in compensation, leads to increased productivity. Employees set ambitious work goals and improvement targets at the beginning of each fiscal year, and are then encouraged to grow by challenging themselves to achieve these goals. Managers give advice and coaching to help their subordinates achieve their goals. At the end of the fiscal year, employees are evaluated on the degree to which they have achieved their goals. At the same time, employees' abilities, potential for growth, and attitude toward their work are taken into consideration to motivate employees and encourage them to grow. Furthermore, to ensure fair and highly transparent evaluations, we are working to improve the perceived fairness of evaluations by conducting evaluator training, communicating evaluation criteria, and holding meetings between supervisors and subordinates using Communication Sheets.

On the other hand, based on our initiatives to monitor the state of the organization, we recognize that one of our future challenges is the need for further improvement and enhancement regarding the perceived fairness of personnel evaluations. The perceived fairness of evaluations is an important factor that affects employees' motivation and willingness to take on challenges, and in turn, the vitality of the organization, and as a result, is also related to productivity.

Shin-Etsu Chemical is therefore in discussions with its labor unions on revision of the personnel evaluation system to further enhance its reliability and fairness with the goal of making the evaluation process and judgments easier for employees to understand and accept. Specifically, we will enhance trust in evaluations by clarifying and disseminating evaluation criteria, improving the quality of communication between superiors and subordinates, enriching feedback, and reducing inconsistencies in implementation.
Through these initiatives, we aim to enhance employees' sense of growth and motivation to take on challenges, thereby unleashing organizational vitality and leading to further improvements in productivity.

*Eligibility for the programs described under “Human Resources Development” is limited to employees of and loaned employees from Shin-Etsu Chemical.